Weak iPhone 6S Performance Forcing Apple Into Drastic Action

While the latest smartphones from Apple might have picked up critical acclaim after their launch in September, Apple is ready to cut the production on the iPhone 6S and iPhone 6S Plus lines by thirty percent, reports Nikkei.

Nikkei suggests that the drop in production follows slower sales in Q4 2015. Apple's production for the iPhone 6S family matched the production numbers for the iPhone 6 and iPhone 6S Plus. The lower sales of the newer handsets have led to more stock in the supply chain than Apple is apparently comfortable with, so the production will be slowed down for the next three months to reduce the backlog.

The slowing of production leaves the option to increase the orders as the elasticity in the supply chain is reduced over the next few months. It also leaves the option of staying at this slower pace if Apple does release a smaller iPhone 6S Mini. Many industry watchers believe a smaller iPhone would be a popular seller with its mix of four-inch screen coupled with similar specifications to the 6S and 6S Plus. It makes sense for Apple to reduce the inventory of the larger handsets before the iPhone 6S Mini potentially 'Osbornes' the handset from September.

The iPhone 6S Mini would also address one of the possible concerns that has led to these lower sales, that of the iPhone 6S family not having enough differentiation from the iPhone 6 and 6 Plus to push people towards a yearly upgrade from the 6 to the 6S. The addition of 3D Touch and upgraded processor was the only real hardware change between the 2014 and 2015 handsets - the software changes in iOS 9 are obviously available to the iPhone 6 and 6 Plus so changes like Live Photos are not going to sell the 6S family.

The slower sales of the iPhone 6S and 6S Plus could be a sign that the iPhone 6 and 6 Plus are 'good enough' for existing customers, and may be proving to be a cheaper upgrade option to those coming out of a two-year contract with the iPhone 5S.

Moving customers back to a one-year upgrade cycle will be one of the key challenges this year for Apple. This is yet another opportunity for Apple's iPhone Upgrade Program to address. Apple's financing program for iPhone purchases offers yearly upgrades to customers if they extend the two-year deal out by twelve months - thus getting them onto that one-year cycle and increasing the turnover of iPhone handsets to the benefit of Apple's bottom line.

I am known for my strong views on mobile technology, online media, and the effect this has have on the public conscious and existing businesses.I've been following this space for over ten years, working with a number of publishers, publications and media companies, some f...